Boomers: Earn, save for golden years

MarshallLoeb

NEW YORK (CBS.MW) -- Baby boomers have the potential to rake in more money for retirement than current retirees, as long as they can resist spending it all.

A new study by the Urban Institute, a think tank in Washington D.C., found that younger members of the baby boom generation, especially those born between 1956 and 1964, could retire with 36 percent more wealth than current retirees.

While today's retirees age 67 and older have a median wealth of $448,000, boomers born from 1946 to 1955 are expected to retire with assets close to $589,000. The model predicts boomers born between 1956 and 1964 will retire with $609,000.

However, the same study concluded that these same boomers are at risk of depleting their retirement wealth much faster. That is because people who retire today retain an average 87 percent of their income before retirement, while younger boomers are expected to retain only 80 percent.

This makes the first few years of retirement crucial. Retirees must invest their wealth in assets like bonds and annuities, rather than buy cars and houses that will not necessarily pay off in the long run.

Avoid the trap of running through money early by consulting at least two professional financial institutions or experts who can offer sound advice.

To calculate your retirement nest egg, visit the American Savings Education Council (www.asec.org). The site's "Saving Tools" section features several worksheets and calculators for you in any stage of retirement planning.

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